Got something to say or just want fewer pesky ads? Join us... 😊
OT One account mortgage
- Thread starter dylan_bha
- Start date
Uncle Spielberg
Well-known member
it works like a massive bank account basically, your mortgage / house is your bank account. they will value the property at say
£ 200000 , on this basis they will lend say 90% £ 180000, if you get a new mortgage / re mortgage of say £ 100000, you can drawdown the extra £ 80000 whenever you want as you have a cheque book at around 6% which is much lower than loans or credit cards, bit dnagerous if you are not disciplined as you can keep writing cheques.
£ 1 is usually the min to keep it open.
PM me for quotes or other options.
GG/US
£ 200000 , on this basis they will lend say 90% £ 180000, if you get a new mortgage / re mortgage of say £ 100000, you can drawdown the extra £ 80000 whenever you want as you have a cheque book at around 6% which is much lower than loans or credit cards, bit dnagerous if you are not disciplined as you can keep writing cheques.
£ 1 is usually the min to keep it open.
PM me for quotes or other options.
GG/US
Rangdo
Registered Cider Drinker
We looked at one but the benefit of offsetting savings etc. was outweighed by the better interest rate that we could get through other deals.
desprateseagull
New member
balance what you may 'earn' interest wise on any savings, against the reducd capital on a loan if you dont need that cash.
a good mate has one, and says its good long term if you can afford to 'overpay' each month - the loan is shortened as you are paying interest for less time, on an amount that is reducing quicker that normal.
it makes a big difference to overall cost of the mortgage.
a good mate has one, and says its good long term if you can afford to 'overpay' each month - the loan is shortened as you are paying interest for less time, on an amount that is reducing quicker that normal.
it makes a big difference to overall cost of the mortgage.
Rangdo
Registered Cider Drinker
desprateseagull said:
Yes but you have to be careful and look at all the options. We seriously looked at one for the benefit of being able to overpay.
However, we ended up getting a regular mortgage with the Halifax that allowed us to overpay by 10% per year.
The one account rate is now 6.45% and ours is more than 1% lower than that which even if you only have a £100000 mortgage equates to £80 less per month in interest.